DuPont Decomposition
Why does EMAMILTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
29.9% = 21.4% × 1.07 × 1.31
Latest: FY2025
Profitability
Net Margin
21.4%
80.3% →21.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
0.64x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.22x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 33.0 pp over 3 years. Driven by net margin declining (80.3% → 21.4%), asset turnover improving (0.64x → 1.07x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 80.3% | 0.64 | 1.22 | 62.9% |
| FY2024 | ₹0Cr | ₹0Cr | 20.5% | 1.08 | 1.34 | 29.6% |
| FY2025 | ₹0Cr | ₹0Cr | 21.4% | 1.07 | 1.31 | 29.9% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.